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Washington's insurance commissioner signed a claims-handling rule on Aug. 18 that from Oct. 18 gives insurers five business days to answer a shop's supplement in writing. — plus lead times, the AIM Act step-down, and the invoice fraud aimed at trades. ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏
FIELD INTELLIGENCE
Automotive Services
Collision Repair · General Auto Repair · Tire & Wheel · Auto Glass · Towing & Roadside · Car Wash & Detailing
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Issue 002  ·  Monday, August 31, 2026 · Biweekly
IN THIS ISSUE
Collision Repair  ·  General Auto Repair  ·  Tire & Wheel  ·  Auto Glass  ·  Towing & Roadside  ·  Car Wash & Detailing  ·  Background signal
RULE · every trade in this issue
Washington's insurance commissioner signed a claims-handling rule on Aug. 18 that from Oct. 18 gives insurers five business days to answer a shop's supplement in writing.
Insurance Commissioner Patty Kuderer signed rule R 2025-05 on Aug. 18, 2026. It takes effect Oct. 18, 2026 and rewrites five sections of Washington's unfair-claims-practices code: WAC 284-30-330, 284-30-340, 284-30-380, 284-30-390 and 284-30-391. The changes are not cosmetic. They convert several things shops have been asking insurers for informally — a written reason for a short pay, the source of a labor-rate benchmark, an in-person look at the car — into duties an insurer owes on a clock, with the claim file as the evidence.
The core provisions: an insurer must respond in writing to both the claimant and the repair facility with a determination of covered amounts within five business days of receiving any supplemental estimate or final invoice. If it pays less than the shop's estimate, it must "promptly and fully disclose all of the reasons" and cite the specific policy provision. It may not deny a claim on a database alone, including estimating software, and on request must say when and where its material-price or labor-rate data was collected and which businesses supplied it. It cannot require submission through an app only.
The rule lands in a squeeze. In the twelve months to July 2026, the CPI for motor vehicle maintenance and repair rose 6.6%, servicing 7.3%, motor vehicle repair 6.2% and vehicle parts other than tires 6.6% — against 3.4% for all items. Over the same twelve months the CPI for motor vehicle insurance fell 4.5%. Carriers are cutting the price of the product while the cost of honoring it climbs. Focus Advisors estimated collision industry revenue fell just under 5% year over year in the first half of 2026.
Washington is not alone. Texas insurers face a Sept. 1, 2026 compliance date for the state's new mandatory right-to-appraisal requirement. California's Bureau of Automotive Repair closed comment Aug. 24 on an airbag-sourcing rule and Aug. 28 on a third round of storage-fee rules, and the Legislature enrolled the California Motor Vehicle Glass Act on Aug. 28. The common thread is documentation: what you wrote down, when you sent it, and whether the carrier answered in writing.
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What to do about it: Pull your last 20 supplements and time-stamp them — date sent, date the carrier answered, and whether the answer was in writing. That log is what a five-business-day rule is enforced with, and you need it before Oct. 18, not after. Rewrite your supplement cover sheet so every line names the OEM procedure and the policy language it falls under; a carrier that must cite policy language back to you will settle faster against a document already framed that way. Where an estimating database or a labor-rate survey drives a short pay, ask in writing for the collection date and the businesses surveyed — Washington now requires that answer, and asking creates a record everywhere else. Train whoever answers the phone to offer the customer an in-person inspection in writing. If you operate in Washington, put Oct. 18 on the calendar and read WAC 284-30-390 before then.
INFOGRAPHIC 1 / SHOP PRICES VS PREMIUMS
Vehicle repair and parts prices rose at roughly twice the headline inflation rate in the year to July 2026.
Unadjusted percent change over the twelve months to July 2026, CPI-U, U.S. city average; BLS Consumer Price Index detailed expenditure table (Table 2), July 2026.
Maint. & servicing
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7.3%
Parts excl. tires
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6.6%
Maint. & repair
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6.6%
Motor vehicle repair
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6.2%
Body work
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3.6%
All items CPI
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3.4%
Tires
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0.7%
Everything you sell got more expensive to produce faster than the economy at large, and tires barely moved at 0.7%. The number not on this chart is the one your customer sees: motor vehicle insurance prices fell 4.5% over the same twelve months. Carriers are cutting the price of the policy while the cost of honoring it climbs, which is why estimates draw more argument than they did a year ago. Source: CPI Table 2: detailed expenditure categories, July 2026 - U.S. Bureau of Labor Statistics
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GENERAL AUTO REPAIR
Two items
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Money
Consumer prices for motor vehicle maintenance and servicing rose 7.3% in the twelve months to July 2026 while the price of motor vehicle insurance fell 4.5%, BLS data show.
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Why it matters: In the July 2026 CPI detail, motor vehicle maintenance and servicing is up 7.3% over twelve months, motor vehicle repair 6.2%, maintenance and repair combined 6.6%, and parts other than tires 6.6%, against 3.4% for all items. Motor vehicle insurance fell 4.5% over the same twelve months, and 0.3% in July seasonally adjusted. Carriers are telling your customer car costs are falling while your bay costs rise at twice the headline rate — expect more pushback on estimates. Parts other than tires jumped 2.4% in July alone, the group's sharpest month, so quotes more than a few weeks old are stale. Re-price your top twenty parts lines against current supplier cost, and check that your posted labor rate has moved as much as the 6.2% repair series since last summer.
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Supply
California's Bureau of Automotive Repair closed comment Aug. 24 on a rule that would bar repair dealers from buying airbags anywhere but the automaker, an authorized supplier or a licensed dismantler.
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Why it matters: BAR's proposed amendment to Title 16 CCR Section 3367 ran a 45-day comment period July 10 to Aug. 24, 2026. No adoption or effective date is published. A dealer could not install, distribute or sell an airbag previously deployed, with an electrical fault, carrying a part that makes the restraint control unit read it as installed, or bearing counterfeit branding. Replacements could come only from the automaker, an authorized supplier or reseller, or a DMV-licensed dismantler — genuine, undeployed, undamaged, recall-free — receipts kept for every part. BAR puts OEM airbags for Toyota, Honda, Ford and Tesla at $500 to $1,000 each, with noncompliant units online at up to half that. Audit your airbag purchase records and drop suppliers that cannot document origin.
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TIRE & WHEEL
Two items
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Regulation
The California Energy Commission approved the nation's first replacement-tire efficiency standards on Aug. 17, adding $1.50 per tire in 2029 and $6.50 per tire from 2033.
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Why it matters: The CEC unanimously approved the Replacement Tire Efficiency Program on Aug. 17, 2026, setting minimum rolling-resistance and wet-grip standards for replacement car and light-truck tires. Phase 1 covers tires made on or after Jan. 1, 2029; stricter Phase 2 begins Jan. 1, 2033. It reaches every tire retailer, including repair dealers that sell tires. CEC puts the added cost at $1.50 per tire in Phase 1 and $6.50 in Phase 2, against $179 in fuel savings over a set's life at $4.60-a-gallon gas and $1 billion a year statewide. Competition, large off-road and all-weather winter performance tires are exempt; compliant tires are already on the market. Ask your program group which SKUs in your fastest-moving sizes comply, so you are not repricing a whole wall in 2028.
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Supply
Mavis closed its roughly $700 million cash purchase of Pep Boys on Aug. 20, taking its network past 4,400 service centers across the United States and Canada.
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Why it matters: An Icahn Enterprises 8-K dated Aug. 20, 2026 reports Icahn Automotive Group completed the sale of The Pep Boys-Manny, Moe & Jack Holding Corp. to Mavis Tire Supply for approximately $700 million in cash. Nearly 800 Pep Boys locations join a Mavis network now above 4,400 owned and franchised, with a much larger Western U.S. presence. Icahn kept the real estate previously transferred to it from Pep Boys, plus AAMCO and Precision Tune Auto Care. Mavis already owns Mavis Discount Tire, Midas, Express Oil Change & Tire Engineers, Brakes Plus, Tire Kingdom, NTB, Town Fair Tire and Tuffy. For an independent this is a buying-power event, not a signage change. Put any Pep Boys in your trade area on your price-shop list and re-shop your distributor terms this quarter.
INFOGRAPHIC 2 / SEVERITY BY POWERTRAIN
The repair-cost gap between an electric car and a gasoline one narrowed by $411 in a single quarter.
U.S. average repairable claim severity, first quarter 2026 to second quarter 2026, dollars per claim; Mitchell Plugged-In: EV Collision Insights, Q2 2026 report released Aug. 20, 2026.
Battery electric
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5684–6042
Plug-in hybrid
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5022–5352
Mild hybrid
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4993–5033
Gasoline (ICE)
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4902–4955
BEV-to-ICE gap
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729–1140
Almost all the movement came from the electric side: BEV severity fell $358 between quarters while gasoline severity rose $53, cutting the premium to a record-low $729. Do not read that as EV work getting easy. OEM parts still account for 84.74% of parts dollars on a BEV estimate against 61.44% on a gasoline one, and Mitchell warns tariffs and shipping could push those parts costs back up. Source: BEV Repair Cost Premium Hits Record Low as Mitchell Warns of Parts Volatility - Autobody News
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AUTO GLASS
Two items
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Regulation
The California Motor Vehicle Glass Act was enrolled Aug. 28 after the Senate concurred 37-0, sending Gov. Newsom a bill that writes calibration disclosure into the Civil Code.
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Why it matters: SB 988 passed the Assembly Aug. 24, the Senate concurred in the Assembly amendments 37-0 on Aug. 26, and it was enrolled Aug. 28, 2026. It would add Title 1.5C, commencing with Section 1784.50, to Part 4 of Division 3 of the Civil Code. As amended it covers businesses primarily engaged in automotive glass replacement, requiring them to disclose ADAS calibration needs, confirm calibration results in writing, and follow new claims-authorization procedures before completing an insured repair. Newsom has until Sept. 30 to sign or veto; it is enrolled, not law. Signed or not, its disclosure text is the template other states copy. Draft the two documents it would require — a pre-work calibration notice and a post-work confirmation — and start issuing them now.
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Insurance
Insurer-funded researchers published an analysis on Aug. 11 finding collision claim severity runs about 10% higher on vehicles with driver-assistance sensors, and 15% higher under property damage liability.
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Why it matters: IIHS and its Highway Loss Data Institute compared otherwise identical 2017-22 model year vehicles with and without driver-assistance bundles. Collision claim severity ran about 10% higher on the equipped vehicles and property damage liability severity about 15% higher, with calibration named as part of the reason: replacing those sensors usually requires one. Overall losses — frequency times severity — ran about 5% lower on equipped vehicles, since the systems prevent many small, cheap crashes that dominate claim counts. The 5% is what carriers will quote; the severity numbers, from a research arm their own members fund, are what help you. Put the 10% and 15% into your next calibration reimbursement appeal with the OEM procedure that required the work.
INFOGRAPHIC 3 / TOTAL-LOSS MATH
Wholesale used-vehicle values have decelerated from a 6.2% annual gain in March to flat in mid-August.
Manheim Used Vehicle Value Index, year-over-year percent change, 2026; Cox Automotive mid-August 2026 report published Aug. 19, 2026.
6.2%
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2.1%
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1.3%
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0%
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Mar
Jun
Jul
Mid-Aug
The index sat at 207.4 in the first half of August, down 1.2% from July and level with a year earlier. This is the input insurers use for actual cash value, so a flattening index means fewer borderline cars getting pushed over the total-loss line by rising values — and more staying in your queue. CCC put total-loss frequency at a record 23.1% of all claims in 2025. Source: Manheim Used Vehicle Value Index: Mid-August 2026 Trends - Cox Automotive
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TOWING & ROADSIDE
Two items
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Regulation
California closed a third comment round on Aug. 28 on storage-fee rules that would force repair dealers to base storage rates on documented costs and publish a searchable rate benchmark.
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Why it matters: BAR's storage-fee rulemaking — amending Title 16 Sections 3303 and 3351, adopting 3351.8.1, 3351.8.2 and 3351.8.3 — took comment Nov. 14–Dec. 31, 2025, March 27–April 13, 2026 on modified text and Aug. 13–28, 2026 on second modified text. No adoption date is published. A dealer would set storage rates from documented costs — rent, mortgage, market value, utilities, labor, liability insurance — store them at its registered primary address, notify the customer before a move and get written authorization past 20 miles. BAR would publish average and median rates by locale; insurers could not use them to suppress an individual rate. BAR's file includes a June suspension over $4,000 charged to store a car for hours. Start a cost file justifying your posted rate line by line.
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Money
California's bandit-towing bill died on the Assembly suspense file Aug. 13 after passing the Senate 38-0, leaving its bond and fine provisions unenacted this session.
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Why it matters: SB 1112 would have let a registered owner, lienholder or insurer post a bond with a county court to force release of a vehicle from a tow yard or storage lot, capped at $6,250 for a company owner and $500 for an individual. Its notice-posting and fine provisions named "auto body shop" alongside towing companies and storage lots. It passed the Senate 38-0 on May 20 and cleared Assembly Judiciary 12-0 on June 16, but Assembly Appropriations held it on the Aug. 13 suspense file, so it is not moving this year. Exposure shifts back to existing law and BAR's storage-fee rulemaking, which is live and further along. The bond mechanism and the four-times-wrongful-charge penalty will return; operators who document release procedures and itemize every storage day will be ready.
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THE BACKGROUND SIGNAL
The fraud that reads your invoices before it sends one
The FBI's Internet Crime Complaint Center took 24,768 business email compromise reports in 2025, with losses of $3.05 billion — a record, after dipping to $2.77 billion in 2024 from $2.95 billion in 2023. Across all internet crime it logged 1,008,597 complaints and $20.88 billion in losses. Reported cases only, so read it as a floor.
Business email compromise, not ransomware, is the one that should concern a shop owner. Someone gets into a mailbox, reads until they understand how you invoice and who pays you, then sends a real-looking progress billing with different bank details. No malware, no warning — just a payment that never arrives and an argument about who eats it. A shop that emails estimates, supplements and parts invoices all day is the shape this is built for. The quieter number is adoption: under 20% of firms with fewer than 20 staff use AI at all.
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What to do about it: You don't need a security program. You need multi-factor authentication on email and your accounting login, and one rule everybody follows: nobody changes bank details on the strength of an email or a call — you ring the number you already had on file and confirm. That covers most of it, and costs nothing. The part it doesn't — how the systems are set up — is the day job of our parent company, CyberSainya.
FBI Internet Crime Complaint Center, 2025 Internet Crime Report — reported cases only, rounded from $2,946,830,270, $2,770,151,146 and $3,046,598,558. U.S. Census Bureau, Business Trends and Outlook Survey, May 3, 2026.
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Automotive Services · Issue 002  ·  Monday, August 31, 2026 · Biweekly
Published biweekly by CernoGlobus, the AI division of CyberSainya.
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